IT sector set to hit the $50-billion mark

Despite a tough economic scenario, the Indian IT software and services sector will touch the $50-billion mark in 2008-09, though the indicated growth is lower at 21-24 per cent (currency-adjusted), according to Nasscom.

The annual survey on the performance of the Indian software and services sector for 2007-08 reported that the Indian IT-BPO industry (including the domestic market) recorded an overall growth of 28 per cent (currency-adjusted), clocking revenues of $52 billion in 2007-08 up from $39.6 billion in 2006-07.

The software and services exports segment grew by 29 per cent (in dollar terms) to register revenues of $40.4 billion in 2007-08, up from $31.4 billion in the previous year. The domestic segment grew by 26 per cent (in rupee terms ) to register revenues of $11.6 billion in 2007-08.

NASSCOM President Som Mittal said, “Given that we are well on our way to achieve the target of $60 billion in exports by 2009-10, the industry is now focusing on improving productivity, efficiency, as well as opening up new markets and services. The next decade offers opportunities and challenges, which will require new business models and the industry dynamics will also see significant changes.”

Within the export segment, IT services exports have grown by 28 per cent (in dollar terms) to clock revenues of $23.1 billion, while BPO exports are up by 30 per cent (in dollar terms), registering revenues of $10.9 billion. Engineering services and products exports clocked revenues of $6.4 billion, growing at 29 per cent (in dollar terms) in 2007-08.

Nasscom reiterated that skill continues to be a constraint and urged ITeS firms to go beyond the top seven cities and to tier-II and tier-III cities.